Klarna Bank AB is adding the option for customers to pay immediately at checkout in nine new markets while expanding its rewards program, as it targets becoming a one-stop lender for consumers.
The company grew to a $46 billion valuation and 100 million users on the back of allowing customers to pay for purchases in installments, fueling a rise in buy-now-pay-later startups. After launching ‘Pay Now’ in the U.S. and U.K. last year, Klarna is now rolling out the service to Australia, Ireland, France, Italy, Spain, Portugal, Poland, Canada and New Zealand, according to a statement.
The company’s rewards program — which sees consumers earn points every time they pay immediately or make an on-time repayment — is also expanding to several new countries, including the U.K., France and Canada. Members earn points for every payment made on time and have 50% higher engagement with Klarna’s app.
Changing the company’s product offering will also allow it to better service sectors like mobility and groceries, Chief Expansion Officer Camilla Giesecke said in an interview.
A lot of our more global partners really want to grow with us into new markets.
The expansion comes as Klarna weighs plans to raise new money in a funding round. That would cement its status as Europe’s most valuable startup even as it faces a challenge to its funding model as interest rates rise.